U.S. and Iran Reach Agreement on Peace Deal Terms in Islamabad back-channel

In a significant diplomatic breakthrough, the Prime Minister of Pakistan confirmed Friday that the United States and Iran have agreed to the formal wording of the 'Islamabad Memorandum,' a deal aimed at ending the current regional conflict. This development shifts Pakistan's role from a mere mediator to a primary co-guarantor of the peace process. While military actions continued for a second night, President Trump described the exchange as 'self-defense' rather than escalation, and U.S. commanders have notably paused planned strikes on Iranian research facilities to allow diplomatic efforts to proceed. Beyond the public negotiations, a secret back-channel in Islamabad is reportedly finalizing a 'step-by-step' framework for sanctions relief and the release of frozen Iranian funds. This track is contingent on Iran maintaining a 'frozen nuclear program' clause. On the ground, humanitarian concerns have intensified, with Tehran accusing the U.S. of war crimes related to the disruption of water infrastructure. However, the prospect of a 60-day ceasefire has already begun to stabilize global energy markets and foster a sense of optimism among the Iranian diaspora. The situation remains fluid as U.S. forces successfully intercepted drones near the Strait of Hormuz. These drones were linked to regional non-state actors rather than direct Iranian command, suggesting a calculated effort by Tehran to de-escalate proxy tensions. If signed, the Islamabad agreement would facilitate the reopening of the Strait of Hormuz, a move already attracting active engagement from Gulf neighbors like Saudi Arabia and Qatar.